Forward looking statements This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown…
Agenda Premier today Simon Lockett 2011 financial results Tony Durrant Operations update Neil Hawkings Exploration update Andrew Lodge Summary Simon Lockett 22nd March 2012 Page 2
Over the last 6 years 338% 80% 40% 72% Over the period, NAV/share CAGR of 14.2% 22nd March 2012 Page 3 excluding oil price effects
Premier today... ... is in the strongest position in its history Clear path to 100,000 boepd from existing projects 1.5 billion of prospective resources in the exploration portfolio Fully funded programme with Evaluate Drill…
2011 highlights... Increased production to 60,000 boepd at year end Chim So and Gajah Baru onstream Next generation of development projects progressing Increased reserves and resources to 527 mmboe Exploration success at 5/bbl…
2011 financial results 22nd March 2012 Page 6
Record profitability 12 months to 12 months to Highlights 31 Dec 2011 31 Dec 2010 Operating costs (/bbl) Working Interest production (kboepd) 40.4 42.8 2011 2010 Entitlement production (kboepd) 37.7 38.3 UK 39.5 28.7 Realised oil…
Rising cash flows 12 months to 12 months to Estimated capex split (m) 31 Dec 2011 31 Dec 2010 2011 2010 m m Development 433 349 Cash flow from operations 530 505 Exploration 228 165 Taxation (44) (69) 661 514 Operating cash flow…
Strong liquidity position at 31 Dec 2011 at 31 Dec 2010 m m Cash 309 300 Bank debt (484) (488) Bonds (341) () Convertibles (228) (218) Net debt position (744) (406) Pro forma Gearing 30% 26% Cash and undrawn facilities…
Fully funded programme 2012 outlook Investment Profile (US million) Forecast full-year 2012 spend of 740 1400 Exploration Expenditure million (development) and 220 million 1300 Development Capex (exploration) 1200 1100 Total capex…
Operations update 22nd March 2012 Page 11
Operations highlights Chim So and Gajah Baru onstream in October Deliverability exceeding expectations Realising further value from producing assets Continued progress on the development portfolio: Huntington and Rochelle…
Production update Production (working interest) Year-end target of 60,000 boepd achieved (kboepd net) Full year production 40,420 boepd 70 Strong gas demand in Pakistan and Asia Indonesia, combined with good facilities 60 MEAP…
Block A strong production performance Anoa & GSA1 Producing at current maximum capacity 170-180 BBtud Phase 4 expansion project underway Raising capacity to 200 BBtud Pelikan will add 70 BBtud of capacity Gajah Baru & GSA2/3/4…
Singapore Gas Market sales are increasing Singapore demand for gas will increase Existing pipeline supplies are naturally declining LNG supplies must commence and increase But supply diversity will be maintained, and be underpinned…
Chim So delivered and ramping up First oil achieved, safely and on budget, in October 2011 Currently producing 25,000-30,000 bopd Gas exports add a further 4,000 boepd Rates limited due to water injection delays 9 production wells…
Chim So uncovering upside potential Chim So North West Far Closure Chim So North West discovered in August 2011 Near Closure Additional gross resource estimate 13 to 20 mmbo Chim Near vertical appraisal well scheduled for…
Kadanwari getting more from a mature field Kadanwari field Came onstream in 1995 Highest gas price in Pakistan 2008-2012, five new gas compartments discovered: K-27 tied-in to system at 45 mmscfd in 2012 K-28 and K-30, which tested…
Wytch Farm motivated operator finding upside Increased equity Increased Working Interest in Wytch Farm by 17.715% to 30.1% in 2011 4,500 boepd of net production in 2012 Adds 11 mmboe of net reserves Upside potential Initiated active…
Huntington and Rochelle progressing to first oil Huntington Rochelle Successful development drilling campaign Rochelle area agreement executed May 2011 Phase 1 sub-sea installation completed Approval of FDP for East and West…
Solan approaching project sanction Premier is Operator with 60% equity Development Concept: Subsea wells and storage tank Processing deck on a conventional jacket Reserves estimate 40 mmbo Initial rate of 22,000 bopd Capex of 850…
Catcher Area selecting a development concept Further 2011 drilling resulted in: FPSO and Subsea Wells STOIIP estimates of 260-290 MMSTB Reserves estimates of 80-130 MMSTB Production rate of 50-70,000 bopd EnCore acquisition has…
Reserves and resources continuing growth Reserves and contingent resources Reserve replacement ratio of 333% (mmboe) 600 2C contingent resources 550 2P reserves 500 230 227 450 400 350 300 296 250 261 200 150 100 50 0…
A clear path to 100,000 boepd Production outlook Development capex (bbls/day) (US million) 120,000 1100 Pre-Development 1000 Sanctioned Projects On Production 100,000 900 800 80,000 700 600 60,000 500 400 40,000 300…
Exploration update 22nd March 2012 Page 25
Exploration strategy Themes Focus on geologies we know well Old New Rifts or frontal fold belts 1. Premier capabilities 3. Technology capabilities and niche strategies and resource diversification Target best plays in basins of…
2011 highlights Exploration drilling Actual & forecast risked resource additions Notable discoveries at Burgman in the Catcher 2009-2015 (mmboe) area in the UK, and CRD and Chim So North West in Vietnam 450 Actual cumulative plus…
Recent acquisitions add to overall portfolio value Evaluate Drill Appraise LEADS PROSPECTS MATURE UNDER PROSPECTS APPRAISAL Silver Tupai Asia Sillago Anakonda B Kecil B Sedang Singa / Alur Kuda Laut Kakak Benteng Kacang…
Exploration North Sea Overview Targeted play led exploration Leveraging extensive datasets and geophysical expertise Pushing plays beyond their currently understood limits wider and deeper Future growth from within the portfolio…
Exploration North Sea Pushing the plays wider Premier has the regional database to pursue amplitude supported Tertiary prospects Stingray throughout the Central North Sea 3 firm wells to be drilled in 2012 targeting Eocene…
Appraisal North Sea Greater Fyne Area Fyne Area entry seeking incremental reserves to reach development threshold Erne and Fyne Appraisal encountered hydrocarbons but limited impact on East Fyne reserves for Greater Fyne Area…
Exploration North Sea Pushing the play wider ... Cyclone Cyclone (P1784) (21/7b) Premier 70% equity, block awarded in 2010 Gross prospective resource estimate (on block) Cyclone 20-35-50 mmboe (Tay reservoir) Risk assessment:…
Exploration North Sea Pushing the plays wider ... 2013 Norfolk (P1887) (12/16b & 12/17b) Premier 25% equity, block awarded in 26th Round Norfolk Gross prospective resource estimate (on licence) 20-146-495 mmboe Risk assessment:…
Exploration North Sea Pushing the plays deeper Potential exists for deeper underexplored fairways in the North Sea Luno II In 2012, Premier will drill two prospects targeting this deeper potential: Lacewing (Triassic target) and…
Exploration North Sea Pushing the plays deeper ... Luno II Luno II (PL 359) Premier equity 30% Ragnarrock Greater Luno is a regional high Focus for oil migration Luno/Apollo Johan Sverdrup Regional top seal drapes the high…
Exploration North Sea Pushing the plays deeper ... Lacewing Lacewing (P1181, 23/21 & 23/22b) Gross prospective resource estimate (on block) 50-70-90 mmboe Risk assessment: high Critical factor: trap effectiveness and reservoir…
Exploration Asia Overview Play led approach in the Nam Con Chim So Son Basin North West Chim So Appraisal Kuda/Singa Laut Matang Kuda/Singa Laut wells planned Anoa Deep, Biawak Besar Prospect maturation for 2013 Adding gas…
Exploration Asia Kuda/Singa Laut ... 1H 2013 Kuda/Singa Laut (Tuna Block) Combined Depth Structure Map Premier 65% equity and Operator Faulted dip closed structure up dip from a proven source kitchen to the east 0m Kuda Laut…
Exploration Asia Anoa Deep success Anoa Deep (Natuna Sea Block A) Premier 28.67% equity and Operator Anoa North Drilled as an exploration tail to the WL-5 development well Encountered 300 feet of fractured Lama Sandstones Lama…
Exploration Asia Potential play opener ... Benteng Benteng-1 Benteng (Buton Block) PTD 3200m MD Premier 30% equity, operated by Japex NW SE Bulu-1 Gross prospective resource estimate: 77 mmboe (mean) Risk assessment: high Critical…
Exploration MEAP Entry into offshore Kenya L10A & L10B Potential to extend successful plays to the south into Kenya 2535 km2 of 3D seismic successfully acquired in Q4 2011 Processing of 3D seismic to be completed by year-end 1030…
Exploration drilling 2012 2012 Mean gross unrisked Asia Q1 Q2 Q3 Q4 resource (mmboe) Risk Vietnam Block 12W Chim So NW Appraisal ENSCO 107 17 Low Indonesia Buton Benteng-1 PRA 01 77 High Natuna Sea Block A Biawak Besar W est Callisto 15…
2012 New Venture focus North Sea (Rift theme) UK and Norway Licence Rounds Potential adds through acquisition MEAP (Rift & Frontal Fold Belt themes) East Mediterranean and Egypt Pakistan and Iraq Expanding Premiers acreage…
Exploration Key messages... Portfolio of 1.5 billion boe of unrisked potential Wells to watch North Sea: Carnaby, Coaster, Cyclone and Luno II Asia: Anoa Deep, Biawak Besar and Chim So North West appraisal On track to deliver…
Summary 22nd March 2012 Page 45
What can you expect from Premier Already in 2012... Solan Board approval Anoa Deep A new exploration play beneath Anoa EnCore Oil Completed acquisition and Cladhan sale Finance Cash/undrawn facilities increased to 1.4 bn Forward…
Appendix 22nd March 2012 Page 47
Group taxation position 12 months to 12 months to UK Tax Allowance Position 31 Dec 2011 31 Dec 2010 at 31 Dec 2011 m m m Overseas 60.1 56.9 Allowances brought forward 1,112 Prior period provisions 72.1 Net additions in 2011…
Other developments Block A Aceh (Vietnam) Caledonia (UK) Project sanction delayed Caledonia will be a tieback to Balmoral Facilities sharing agreement with Arun but with gas lift from Britannia not completed (Arun owner is…
Other developments Bream (Norway) Fry (Norway) Development plan progressing and the Work on the stand-alone development FPSO has been selected remains on hold FEED is underway on both the FPSO Discussions on joint development…
End 2011 2P reserves and contingent resources North Sea Asia MEAP Total 2P Reserves On production 36.8 74.8 32.5 144.1 Approved for 16.6 33.7 5.1 55.5 development Justified for 71.8 24.1 0.8 96.7 development Total Reserves…
Prospective resource portfolio Unrisked prospective resource portfolio Unrisked Resource Portfolio Discovered resource of 1,696 mmboe under appraisal 33 mmboe Portfolio changes from 2010: Increased lead inventory in Kenya, Total…
Recent acquisitions add to overall portfolio volume Evaluate Drill Appraise LEADS PROSPECTS MATURE UNDER PROSPECTS APPRAISAL Tupai Asia Silver Sillago Anakonda B Sedang Singa / Alur Kuda Laut B Kecil Kakak Benteng Kacang…
Exploration North Sea Carnaby Carnaby (28/9) Cromarty Depth Structure Varadero Premier 35% equity Gross prospective resource estimate 15-30-50 mmbo (Tay reservoir) Catcher E Expected phase oil Catcher Main Gas in shallower Eocene…
Exploration North Sea Coaster Coaster (28/10a) Rapide JU1 Vincent Premier 100% equity, TAQA farmed Varadero into 50% interest Catcher North Cougar Gross prospective resource estimate 13-50-125 mmboe (on block) Carnaby Tiger…
Exploration North Sea Stingray Stingray (P1212) (15/13b) Premier 50% equity, block awarded in 2004 Stingray Gross prospective resource estimate (on block) 12-30-90 mmboe Risk assessment: moderate Critical factor: trap sealing…
Exploration North Sea Spaniards Spaniards (P1655) Spaniards West Perth Central Spaniards Spaniards East Ryazanian Galley Galley Premier equity 28% and Operator, adjacent to Scott infrastructure 14/25a-5 Gross prospective resource…
Exploration Asia Biawak Besar Biawak Besar (Natuna Sea Block A) Premier: 28.67% equity and Operator Iguana Discovery Gross prospective resource estimate 13-15-17 mmboe Risk assessment: low Biawak Besar-1 Critical factor: lateral…
Exploration Asia Matang Matang (Block A Aceh) Premier equity 41.67% Matang Gross prospective resource estimate 20-40-70 mmboe (whole structure) Risk assessment: low Critical factor: reservoir presence 250 BCF follow on potential…
www.premier-oil.com 22nd March 2012 Page 60 March 2012
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